Friday, 31 December 2010

All India Consumer Price Index Numbers – Inflation is 8.330% for the Month of November, 2010

8.33% increase in inflation  recorded as All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of November, 2010 increased by one  point and reached 182.

This Consumer Price Index is calculated on the basis of the index price in 2001 is 100 and in July, 2010 it was 11.25%, in August 2010 it was 9.88% in September, 2010 the Consumer Price Index was 9.82%, and in October, 2010 it was 9.7%. This index rate is calculated on the basis of the price difference of essential things like Rice, Wheat Atta, Mustard Oil, Chillies , Clothing, Turmeric powder, vegetable, fish etc. etc.

The Indices in respect of the six major centers are as follows

1. Ahmedabad             –          180

2. Bangalore                -           183

3. Chennai                   –          165

4. Delhi                       –          168

5. Kolkata                   –          177

6. Mumbai                   –          182

The difference in consumer price index influences the cost of living. So the Dearness allowance etc. is calculated without the difference of price index. Dearness allowance (July and January) is calculated on the basis of averages consumer price index for the last six months.

As per the consumer price index the D.A calculation is as follows from July. 2010 to November, 2010

Months           AICPIN          DA%

July-10            178                  46.35%

Aug-10            178                  47.50%

Sep-10             179                  48.66%

Oct-10             181                  49.81%

Nov-10            182                  50.81%

But this month the prices of essential commodities especially vegetables have increased a lot and the Consumer price index and D.A will be increased.

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25 Paisa Coins will be vanished to history

Finance Ministry decided to stop 25 paisa coins. Earlier 10 paisa coins have been withdrawn by the Finance Ministry. 50 Paisa will get the status of the minimum coin and all other smaller denominations will cease to be legal currency.

On Thursday the Finance Ministry issued a statement and the statement revealed the decision to withdraw 25 paisa and other smaller denominations shall cease to be a legal tender for payment as well as on account and further said that the minimum denomination coin acceptable for transaction will be 50 paise. This will happen from the coming June 30.

The entries in the books of accounts, pricing of products, services and taxes should be rounded off to 50 paise or whole rupee from that date.

Hope that the decision of withdrawing coins of smaller denominations will be welcomed by general public.

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New Year Greetings From Investments and Money.com

One more year is already over. A new year is coming. All of us are completed one more year in our life. When the old year is over it is time to rethink. What were our new decisions and expectations at the beginning of the outgoing year? Could you fulfill all of them? If you could not complete all of them don’t worry. Learn from the year 2010 and start a new life in this New Year. The coming year will be a good and prosperous year for all our readers. We wish you a peaceful and happy new year.



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Thursday, 30 December 2010

KYC is Mandatory for Mutual Fund Investors from 01st January, 2011

The present requirement of KYC (Know Your Customer) is only those who have an investment of Rs. 50000 or more in a particular Mutual Fund. But this limit is reduced to Zero with effect from 01st January, 2011. From 01st January, 2011 onwards you must complete the KYC (Customer verification) for investing any amount in Mutual Funds.

Any individual investor or institutional investor must be KYC compliant, (Completed the KYC formalities) for investing in Mutual Funds in a lump sum or in SIP (Systematic Investment Plan). So we strongly advice all investors those who wish to invest in Mutual funds to complete the KYC process as soon as possible. You can submit the filled Up KYC application form at any branches or your brokers or agents or you can submit it directly by yourself.

Following are the useful links related to KYC.

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KYC (Know Your Customer) for Investors

Form 01st January, 2011 submission of KYC (Know Your Customers) is mandatory for all investors and those who have a past history of

New FMPs and NFOs are open at market
The Following FMPs (Fixed Maturity Plans) and NFOs (New Fund Offerings) are open at Market. If you wish to invest in these Mutual funds check the performance of the Fund, Fund house and Fund manager before investing. Remember the statutory … Continue reading ?

New Mutual Funds (NFO) open at market
The following are the New Fund Offerings (NFO) open at market New Mutual Fund       :           DWS Fixed Term Fund – Series 78(15 Months)(Dividend) Fund House                        :               DWS Mutual Fund Jan NFO Opening & Closing :               04 2011 Jan 17 … Continue reading ?

Mutual Funds (NFO) Open At Market
Following Mutual Funds are open at market. It is listed in the order of Name of Mutual Fund Name of Fund House Opening and closing date of NFO Minimum required Investment SBI Debt Fund Series 180 Days(14)(D) SBI Mutual Fund … Continue reading ?

Wednesday, 29 December 2010

New FMPs and NFOs are open at market

The Following FMPs (Fixed Maturity Plans) and NFOs (New Fund Offerings) are open at Market. If you wish to invest in these Mutual funds check the performance of the Fund, Fund house and Fund manager before investing. Remember the statutory warning of Mutual funds that the past performance may or may not reflect in future.

The New Mutual Funds are listed below with the Name of the Mutual Fund, Name of the Fund House, Opening Date, closing date and the minimum required amount to be invested in each Mutual Fund (Kindly See the Table at the end of this post)

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New Mutual Funds (NFO) open at market
The following are the New Fund Offerings (NFO) open at market New Mutual Fund       :           DWS Fixed Term Fund – Series 78(15 Months)(Dividend) Fund House                        :               DWS Mutual Fund Jan NFO Opening & Closing :               04 2011 Jan 17 … Continue reading ?

Mutual Funds (NFO) Open At Market
Following Mutual Funds are open at market. It is listed in the order of Name of Mutual Fund Name of Fund House Opening and closing date of NFO Minimum required Investment SBI Debt Fund Series 180 Days(14)(D) SBI Mutual Fund … Continue reading ?

Why Should We Invest Our Money?
No doubt this is a good question.  You are making money with your hard work, physically or mentally. Whatever may be your method of making money you and I need money to survive in this fast developing world. Recently we … Continue reading ?































































































































































































































































































utual FundReligare FMP Series-4 F(368 days)(Dividend)
Fund HouseReligare Mutual Fund
Opening DateJan 07 2011
Closing DateJan 12 2011
Minimum DepositRs 5000
Mutual FundReligare FMP Series-4 F(368 days)(Growth)
Fund HouseReligare Mutual Fund
Opening DateJan 07 2011
Closing DateJan 12 2011
Minimum DepositRs 5000
Mutual FundSBI Debt Fund Series -18 Months(5)(Dividend)
Fund HouseSBI Mutual Fund
Opening DateDec 31 2010
Closing DateJan 06 2011
Minimum DepositRs 5000
Mutual FundSBI Debt Fund Series -18 Months(5)(Growth)
Fund HouseSBI Mutual Fund
Opening DateDec 31 2010
Closing DateJan 06 2011
Minimum DepositRs 5000
Mutual FundSundaram Fixed Term Plan Series AH(15 Months)(Dividend)
Fund HouseSundaram Mutual Fund
Opening DateDec 27 2010
Closing DateDec 31 2010
Minimum DepositRs 5000
Mutual FundSundaram Fixed Term Plan Series AH(15 Months)(Growth)
Fund HouseSundaram Mutual Fund
Opening DateDec 27 2010
Closing DateDec 31 2010
Minimum DepositRs 5000
Mutual FundSundaram Fixed Term Plan Series AI(15 Months)(Dividend)
Fund HouseSundaram Mutual Fund
Opening DateJan 10 2011
Closing DateJan 14 2011
Minimum DepositRs 5000
Mutual FundSundaram Fixed Term Plan Series AI(15 Months)(Growth)
Fund HouseSundaram Mutual Fund
Opening DateJan 10 2011
Closing DateJan 14 2011
Minimum DepositRs 5000
Mutual FundSundaram Fixed Term Plan Series AJ(24 Months)(Dividend)
Fund HouseSundaram Mutual Fund
Opening DateDec 27 2010
Closing DateJan 07 2011
Minimum DepositRs 5000
Mutual FundSundaram Fixed Term Plan Series AJ(24 Months)(Growth)
Fund HouseSundaram Mutual Fund
Opening DateDec 27 2010
Closing DateJan 07 2011
Minimum DepositRs 5000
Mutual FundSundaram Fixed Term Plan Series AL(30 Months)(Dividend)
Fund HouseSundaram Mutual Fund
Opening DateJan 03 2011
Closing DateJan 14 2011
Minimum DepositRs 5000
Mutual FundSundaram Fixed Term Plan Series AL(30 Months)(Growth)
Fund HouseSundaram Mutual Fund
Opening DateJan 03 2011
Closing DateJan 14 2011
Minimum DepositRs 5000

C Mahendra Exports Ltd Issues IPO

C Mahendra Exports Ltd is one of the leading diamond jewellery Manufacturing Company wide spread around the world. The Company is engaged in trading and processing of diamond and diamond jewellery Now C Mahendra Exports issues Initial Public Offer (IPO) of 1.5 crore equity shares of Rs 10 each on December 31, 2010.

The capital accumulated through this IPO will be used for setting up of a diamond processing unit at Gujarat Hira Bourse, SEZ, Ichchhapore, Surat; setting up a jewellery manufacturing unit at Mumbai; setting up retail outlets; brand development expenses and investment in capital of C Mahendra BVBA.

The issue will open on 31st December, 2010 and will close on 6th January 2010.The IPO is Book Building IPO with a Price Band: Rs. 95/- to Rs. 110/- per equity share.

Minimum No of shares to be applied is 60 shares and additional 60 shares each. Lead managers of this IPO are Anand Rathi Advisors Limited and YES Bank Limited.

This is a good chance to participate the diamond manufacturing business.

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Punjab and Sind Bank Issues IPO
Punjab and Sind Bank (PSB), a PSU bank wholly owned by government of India issues IPO (initial Public Offering) of 4 crore equity shares (with a face value of Rs. 10 per share) from 13th December, 2010 to 16th December, … Continue reading ?

The Shipping Corporation of India Limited issues FPO (Follow on Public Offering)
As we posted earlier The Shipping Corporation of India Limited issues FPO (Follow on Public Offering). The Shipping Corporation of India has been established on 2nd October, 2010 by amalgamating Eastern Shipping Corporation and Western Shipping Corporation.  Now it is … Continue reading ?










New Mutual Funds (NFO) open at market

The following are the New Fund Offerings (NFO) open at market

New Mutual Fund       :           DWS Fixed Term Fund - Series 78(15 Months)(Dividend)

Fund House                        :               DWS Mutual Fund Jan

NFO Opening & Closing :               04 2011 Jan 17 2011

Minimum Investment    :               Rs 5000

New Mutual Fund       :           DWS Fixed Term Fund - Series 78(15 Months)(Growth)

Fund House                        :               DWS Mutual

NFO Opening & Closing :               Fund Jan 04 2011 Jan 17 2011

Minimum Investment    :               Rs 5000

New Mutual Fund       :           ICICI Pru Fixed Maturity Plan - Series 53 - 3 Year Plan B(Dividend)

Fund House                       :               ICICI Prudential Mutual Fund

NFO Opening & Closing :               Dec 28 2010 Jan 6 2011

Minimum Investment    :               Rs 5000

New Mutual Fund       :           ICICI Pru Fixed Maturity Plan - Series 53 - 3 Year Plan B(Growth)

Fund House                        :               ICICI Prudential Mutual Fund

NFO Opening & Closing :               Dec 28 2010 Jan 6 2011

Minimum Investment    :               Rs 5000

You can invest in these New Mutual Fund Offers and remember that study more about each NFO before depositing in it. The past performance may or may not be repeated in future.

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Tuesday, 28 December 2010

Investment for tax saving is a wise decision or not

Tax payers always try to pay less tax and it is legal that you can reduce your tax liability by proper tax planning. But most of the financial institutions and stock brokers offer high return for most of their financial products such as mutual funds, Ulips and high return investments. In this situation most of the tax payers are in a dilemma that whether they have to invest in tax saving investments or pay tax and invest in any other high income investments. Let us compare the tax saving and other investment options with this concept.

As per the present income tax rule one can get tax exemption of Rs. 100000 under section 80C of the investments in Tax saving Fixed deposits, PPF (Public Provident Fund) , NSC (National Saving Certificate), ELSS(Equity Linked Saving Scheme - Mutual Fund), Principal amount reimbursement of Housing loan, LIC (Premium of Life Insurance) , Tuition Fee for children etc.

And another Rs. 15000 – 20000 in Medical Insurance for self, spouse and children and another 15000 -20000 for the medical insurance of parents (Rs. 20000 if any one or more of the insured is a senior citizen) under section 80 D. Interest of home loan up to Rs. 150000 is the main exemption.

Out of the abovementioned exemptions a major portion of exemptions under section 80 C are investments. All those investments except ELSS are fixed income investments and most of them attract an interest of 8% to 9% and the interest from PPF is tax free also. Now let us examine the various fixed income tax saving schemes and its benefit with saved tax and also can compare with other non tax saving investments.

First we can take Public Provident Fund (PPF) which has 8% tax free income. (Study with Rs. 10000 for a sample study) The 10% Tax payers get 19% profit in the first year, 20% tax payer’s get 30% and 30% tax payers get 41% profit in the first year (See the Chart Below)

For any other tax saving scheme the 10% Tax payers get 17% profit in the first year, 20% tax payer’s get 27% and 30% tax payers get 37% profit in the first year.(See the chart below. Assumed that interest is 8% per annum)

PPF



















































Tax Brackets10%20%30%
SchemePPFPPFPPF
Amount Invested100001000010000
Tax Saved103020603090
Interest (first Year)800800800
Tax Of interest (not to pay)82165167
Total Profit (First Year)191230254057
% Profit (First Year)193041

Other Tax saving scheme except PPF













































Tax Brackets10%20%30%
Amount Invested100001000010000
Tax Saved103020603090
Interest (first Year)800800800
Tax Of interest (payable)-82-165-167
Total Profit (First Year)174826953723
% Profit (First Year)172737

The 10% Tax payers get 17% profit in the first year, 20% tax payer’s get 27% and 30% tax payers get 37% profit in the first year.

If you deposit in any non tax saving scheme such as mutual funds, shares etc., instead of saving your tax, you cannot guarantee this much profit because the profit is not sure due to high risk rate. Even if other saving schemes give you more benefit, do not avoid tax saving schemes, because these tax saving schemes offer you an assured return as per the above mentioned percentage. Other financial investments give you high return, but not sure. IT may or may not be more than this tax saving schemes or less. So first you think about tax saving schemes and get maximum benefit out of it and then you turn to other financial instruments. Investment and money matters wish you a prosperous and profitable new year 2011 for all our readers.

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Public Provident Fund is the best tax saving instrument because the income from PPF does not attract tax as per the current income tax rule. One can deposit the maximum amount of Rs. 70000 in Public provident fund. PPF gives … Continue reading ?

Monday, 27 December 2010

Mutual Funds (NFO) Open At Market

Following Mutual Funds are open at market. It is listed in the order of

Name of Mutual Fund

Name of Fund House

Opening and closing date of NFO

Minimum required Investment

SBI Debt Fund Series 180 Days(14)(D)

SBI Mutual Fund

Dec 23 2010 Dec 27 2010

Rs 5000

SBI Debt Fund Series 180 Days(14)(G)

SBI Mutual Fund

Dec 23 2010 Dec 27 2010

Rs 5000

DSP BR Fixed Maturity Plan -12 Months Series 11(Dividend)

DSP Blackrock Mutual Fund

Dec 27 2010 Dec 28 2010

Rs 10000

DSP BR Fixed Maturity Plan -12 Months Series 11(Growth)

DSP Blackrock Mutual Fund

Dec 27 2010 Dec 28 2010

Rs 10000

DSP BR Fixed Maturity Plan 3 Months Series 26(Dividend)

DSP Blackrock Mutual Fund

Dec 24 2010 Dec 27 2010

Rs 10000

DSP BR Fixed Maturity Plan 3 Months Series 26(Growth)

DSP Blackrock Mutual

Fund Dec 24 2010 Dec 27 2010

Rs 10000

DWS Fixed Term Fund - Series 78(15 Months)(Dividend)

DWS Mutual Fund

Jan 04 2011 Jan 17 2011

Rs 5000

DWS Fixed Term Fund - Series 78(15 Months)(Growth)

DWS Mutual Fund

Jan 04 2011 Jan 17 2011

Rs 5000

ICICI Pru Fixed Maturity Plan - Series 53 - 3 Year Plan B(Dividend)

ICICI Prudential Mutual Fund

Dec 28 2010 Jan 6 2011
Rs 5000

ICICI Pru Fixed Maturity Plan - Series 53 - 3 Year Plan B(Growth)

ICICI Prudential Mutual Fund

Dec 28 2010 Jan 6 2011

Rs 5000

SBI Debt Fund Series 90 Days(37)

Dec 10(Dividend) SBI Mutual Fund

Dec 28 2010 Dec 28 2010

Rs 5000

SBI Debt Fund Series 90 Days(37) Dec 10(Growth)

SBI Mutual Fund

Dec 28 2010 Dec 28 2010

Rs 5000

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Sunday, 26 December 2010

Money Management - Manage Your Money In An Effective Way

We must have hear so many management themes such as human recourse management, office management, business management etc. whatever may be the theme the management is that manage or control the things effectively. It includes steps to take effective and smooth going of things related to the theme. Here money management also includes planning and controlling your money matters such as fixing your financial goals, budgeting, avoid unnecessary expenditures, saving and investment, capacity to bear risk etc. etc. It takes decision according to the current scenario, economic movement and considering the internal and external matters affecting money matters. When considering the management of money it includes both inflow and outflow of money in various forms and sources.

Let us see the when and where we need money management

Retirement plan

This is one of the important stages where we need money management.  When we are working and have the ability to earn money we won’t think about retirement. But experts say that we must plan our retirement even when we are at our younger age. Join a good retirement plan and take the maximum limit you could join for. You need more money when you retire. This is because of the inflation and you would not get easy loan when you retire. So keep enough money in any good retirement plan.

Clear off your debts

Pay off all possible debts and start from high interest debts to low interest debts. Pay of f all credit card balances because it has high interest rates. Try to settle credit card bills in time. Then the other loans also and try to pay installments in time to get a good credit score.

Keep good cash balance in your savings accounts.

You need enough liquid money in your accounts so that you can meet any emergencies or if you lose your job or any sources of income. This will give you more security and courage to change your job or bear more risk.

Investments

Try to invest your money in various investment schemes such as mutual funds, safe deposit schemes and high risk and high income schemes/. Diversify your investment to add up more security. Learn every aspects of money such as the ways of spending money and the sources and methods of earning money.

When you need to manage more money and a variety of investment instruments, wealth etc., you can get help from any professional money managers, who can direct you in an effective money management. A good money manager can help you to plan your money matters effectively. So find a good money manager and plan your financial future effectively.

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Money Management \'\" Manage Your Money In An Effective Way

Saturday, 25 December 2010

Job Vacancies in Employment News 18 December 10 – 24 December 10

The investment and money matters wish to post job vacancies which may be useful for our readers those who are looking for employment or change of present job. A job is a must for majority of people to survive and also for the financial security of themselves and their family. We don’t wish to advertise job vacancies in this post. Just inform you the highlights of some job vacancies advertised or posted in any employment publications which will give you awareness about the job vacancies. Readers are supposed to readout the concerned publications for more details. The Following vacancies are posted in Employment News (18 December 2010 - 24 December 2010)

Assistant Grade –II under sports quota in FCI (Food Corporation of India)

Various posts in Variable Energy Cyclotron Centre

Professor, Associate Professors and Assistant Professors etc required for National Institute of Technology Nagaland

Result of written test of National Defence Academy and Naval Academy Examination, (II), 2010. Declared by UPSC (Union Public Service Commission)

Various posts in Bhabha Atomic Research Centre, Mumbai

Doctors required for North Central Railway, Allahabd

Indian Navy invites applications from unmarried Male Candidates for enrolment as Sailors for Artificers Apprentice (AA)-130 Batch.

Vacancy of Lecturers in Dau Dayal Mahila (PG) College, Firozabad

Helicopters Pilots against Special Recruitment Drive for SC/ST Candidates in Pawan Hans Helicopters Limited

Junior Hindi Translators needed for Engineers India Limited

Kindly read the employment news (18 December 2010 - 24 December 2010) for more details and apply for the abovementioned jobs.

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Friday, 24 December 2010

High Response for DDA Housing Scheme 2010

The Application for DDA Housing Scheme 2010 closed yesterday, 24th December, 2010. Around 14 lakh application forms being sold. Delhi Development Authority is offering around 16000 flats in different locations in Delhi.

As per the official sources there were a strong response to the DDA Housing Scheme 2010 and it is one of the largest housing schemes that the DDA offered ever. A DDA official said, "After the good response to the 2008 housing scheme, we were anticipating that the demand would be high for this year's scheme too. More forms had been printed in case banks ran out of the stock."

Earlier also DDA's housing schemes have received high response. DDA housing scheme 2008, offered around 5,000 flats, had received more than 5 lakh applications. The DDA Housing Scheme 2010 is offering 16,000 flats in various categories from one-room set in Jasola and Trilokpuri to furnished three-bedroom flats in Vasant Kunj.

DDA started receiving application from 24th November, 2010 onwards and on the first day itself 76,376 forms were downloaded from the DDA website.

The flats are priced from Rs 6 lakh to Rs 1.12 crore. The one room Janta flats are priced between Rs 3 lakh and 6 lakh.

Wish all the applicants a victorious new year and hope that all winners of the lot get their preferred flat.


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Christmas Greetings form Investment and Money Matters

"Suddenly, the angel was joined by a vast host of others—the armies of heaven—praising God and saying, Glory to God in highest heaven, and peace on earth to those with whom God is pleased.” When the angels had returned to heaven, the shepherds said to each other, “Let’s go to Bethlehem! Let’s see this thing that has happened, which the Lord has told us about.” Luk 2: 13-15 (Bible)



Another Christmas day is coming. Christmas is the day of peace and joy. On Christmas day we celebrate the birth of Jesus Christ who always loves you, care you and able to give you peace and joy. In this Christmas season let us spread the message of love and peace to all. Let us find time to care others. Find something to share with others.  When we consider others, when we spend one smile to others we can enlighten our own mind and heart with peace and joy.

Investment and money matters wish all our readers a merry Christmas and joyful and happy holidays. Let us invest our own peace and joy to others' mind and heart and we can enjoy the growth of our investment of joy and peace spread everywhere.

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Thursday, 23 December 2010

Why Should We Invest Our Money?

No doubt this is a good question.  You are making money with your hard work, physically or mentally. Whatever may be your method of making money you and I need money to survive in this fast developing world. Recently we all witnessed that the value of all necessary items are going upwards. So we are aware about the value of money. The money we make with our hard work, spending for our daily needs and we help others to get money. But we know that we can make money with our hard earned money also. This may called investing, business etc.

In business we spend money for earning money. We should spend money, time and work for doing a good business and we can harvest profit.  For investing also we should spend money by way of depositing it in any financial instruments such as stocks, mutual funds, money market instruments, government securities etc. But in investing we must not do more to grow our money apart from business. Just find out suitable investment scheme and deposit money, the money will grow without our effort.

How do we know where to invest? We need to learn more for answering this question. Yes we need more knowledge about investing our money. Those who know the right way of investing became richer and others may become poorer. Let us remember the Bible verses Mathew: 25: 27-28 “Well, then, you should have deposited my money in the bank, and I would have received it all back with interest when I returned. Now, take the money away from him and give it to the one who has ten thousand coins.”

You may feel that this is injustice. But this is actually happening. Those who do not invest their money in right way spend their money and somebody else will earn more from that money. So learn how to invest your money well.

If your money is lying idly in that Savings Bank account you can hardly earn around 2% to 3 % in the form of interest. But if you deposit it in any fixed deposit scheme in the bank you can earn around 5% to 6%. But if you invest it in any government securities you can earn around 8% to 10%. If you go forward and ready to bear some risk you can invest in mutual funds and can earn a minimum of 15% to 20% and in shares you can reap more. But the chances of losing money are also there in stock market and mutual funds.

For getting more profit from investment you must learn how to invest maximize your profit from investments. You have to study more through more reading and research in the stock market and mutual fund world. Now you are in the beginning of the way of investments. Go ahead and learn more and at the same time start investing from your hard-earned money to make money without much difficulty. Hope that the New Year will teach you more about investments and wish you a good investing future.

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Wednesday, 22 December 2010

Income Tax Deduction (TDS) from Salaried Employees

In case of salary the employer should deduct Tax at the time of disburse the salary. This deduction is known as Tax Deducted at Source (TDS) from Salary. TDS from Salary is not like other TDS such as TDS from Contractors, TDS from interest etc. TDS other than salary is only a certain percentage of the payment is to be deducted. But TDS from salary should be full. The employer should deduct the actual Tax which is liable by the employee regarding salary and any other income disclosed by the employee.

When the Tax liability of an employee is calculated, the employer can deduct all permissible deduction such as certain investments, certain allowances etc. as per the Income Tax rule. The employee should declare his investments which may be deducted from their gross salary. These investments are come under section 80C of income tax Act and other related sections.

Let us see which investments are allowed to deduct from the gross salary or gross income as per income tax rule.

Under Section 80 C there is a list of financial instruments you can invest in for getting exemption. Under this section you can claim the total exemption up to Rs. 100000. It means Rs. 100000 or the sum total of all such investments in a financial year, whichever is less.  Let us see which investments are eligible for getting exemption under section 80C.

Employees Provident Fund (EPF, GPF)

Employee’s provident fund (EPF for Private sector employees and GPF for Government employees) is a compulsory deposit as per the provident fund rule. At least the minimum amount must be deducted from employee’s salary by the employer and should be deposited in Provident Fund office or any related trust. (One can allow deducting more as voluntary contribution of provident fund) The provident fund amount may be enough to cover the maximum limit of Rs. 100000 under section 80C for higher salaried employees. The employee can get interest from the deposited amount and the interest is tax free as per the current income tax rules.

Public Provident Fund (PPF)

PPF is another good investment instrument which attracts exemption under section 80C. One can deposit a maximum amount of Rs, 700000 in a financial year in PPF and the interest on PPF also not taxable. This is a safe and good investment method and you can open it any post office or selected national banks. Read more about PPF

Equity Linked Savings Scheme (ELSS)

ELSS or Equity Linked Savings Scheme is a type of mutual fund where there is investing in equity shares and the lock in period is only 3 years. This is also considered as a tax saving instrument. The main advantage is that the lock in period is 3 years and other tax saving schemes has 5 years or more lock in period. This is a high risk investment, because the money is pooled to investing in Equity shares and the return also high.

Life insurance

All life insurance policy also qualified as tax saving scheme under section 80C. The premium actually paid for the financial year is eligible for deduction. But the premium amount in an year must not be more than 20% of the sum assured.

Unit Linked Insurance Plans (Ulips)

ULIPs are insurance plans with a combination of saving in mutual funds. This has two sided advantage is that the insurance and mutual fund saving will be do in one deposit.

Pension plans

Any recognized pension plan including new Pension Scheme is eligible for tax exemption.

NSC or National Saving Certificate

NSC is a post office investment scheme which has a tax saving benefit. It is a secured and safe investment scheme and the risk involved is very less. .Read more

SCS or Senior Citizen Saving Scheme

Senior Citizens Saving Scheme is a deposit scheme introduced by Government of India to provide a good return to senior citizen through a safe investment scheme and also ensure them a good regular income. This is also eligible for tax saving under section 80C.More about senior citizen Saving Scheme

Five year Tax Saving Fixed Deposits

To increase the popularity of Fixed Deposits 5 year special fixed deposits also allowed for tax exemption under section 80C. The lock in period is 5 years and the interest rate is around 8%.

Tuition Fee paid to recognized regular institution

Tuition fee paid for two children in a financial year also attracts tax deduction. Better you should pay tuition fee by cheque and get a certificate from the school or college. Keep in mind that only tuition fee is exempted and all other fee is not included in this exemption. Obtain a certificate from the education institution for availing this exemption.

Principal amount of home loan repayment

If you have taken home loan from a recognized financial institution you can claim the repayment of principal amount in the financial year. The loan and house should be in the name or joint name of the person who claims the exemption and the payment must be given from the bank account of the person who claims the exemption.

All the above mentioned items are for tax exemption under section 80C and the total amount of exemption is the total investment or Rs. 100000 whichever is less.

Other deductions form gross income

Infrastructure bonds

Under Section 80CCF you can claim additional exemption up to Rs. 20000 for the investment in Infrastructure bonds of certain recognized institutions.

Health Insurance

Under Section 80D you can claim exemption for the medical insurance premium up to Rs. 15000 (Rs, 20000 if any person insured is a senior citizen) for the insurance of self, spouse and children and another Rs. 15000 (Rs, 20000 if any person insured is a senior citizen) for the medical insurance of any parent or parents.

Interest on home loan

If you have taken loan for purchasing a house, you can claim an exemption up to Rs. 150000 for the interest payment of housing loan only if you paid the interest from your income and the loan and house must be in your name or you are the co owner of the house and co borrower of the loan.

Donation to approved institution or approved purpose

If you give donation to any approved institution or any approved purpose, your donation is allowed to get exemption under section 80G.Under section 80G you can claim exemption of 50% or 100% of donation as per the case and the approval and percentage of exemption will be on the receipt.

Handicapped dependents

If you or any of any of your dependents are handicapped you can claim a deduction up to Rs. 50000 for the medical treatment or for the deposit made for the maintenance of such person in any approved schemes. If the person has severe disability the allowable exemption is Rs. 100000. (Certificate required)

Deduction for medical treatment

If you or any of your dependents is suffering from any specified disease you can claim exemption of Rs. 40000 or the actual expense for the expenses of medical treatment and the limit is Rs. 60000 if the patient is a senior citizen. (Medical Certificate is required)

For all the above exemption you should submit a declaration and proof of relevant document to your employer in time. The employer can calculate your tax liability in consideration of this exemption and the TDS will be made accordingly.

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New Mutual Funds open in the market.

There are mutual funds presently open in the market. It is written in the order that Name of Mutual Fund

Name of Fund House

Date of opening and closing

Minimum deposit amount

ICICI Pru FMP - Series 53 - 18 Months Plan A (D)

ICICI Mutual fund

Dec 16 2010 Dec 23 2010

Rs 5000

ICICI Pru FMP - Series 53 - 18 Months Plan A (G)

ICICI Mutual fund

Dec 16 2010 Dec 23 2010

Rs 5000

Reliance Fixed Horizon Fund - XVIl - Series 1 (D)

Reliance Mutual fund

Dec 20 2010 Dec 22 2010

Rs 5000

Reliance Fixed Horizon Fund - XVIl - Series 1 (G)

Reliance Mutual fund

Dec 20 2010 Dec 22 2010

Rs 5000

SBI Debt Fund Series 180 Days(14)(D)

SBI Mutual Fund

Dec 23 2010 Dec 27 2010

Rs 5000

SBI Debt Fund Series 180 Days(14)(G)

SBI Mutual Fund

Dec 23 2010 Dec 27 2010

Rs 5000

Religare Medium Term Bond Fund (AD)

Religare Mutual

Fund Dec 13 2010 Dec 24 2010

Rs 5000

Religare Medium Term Bond Fund (G)

Religare Mutual Fund

Dec 13 2010 Dec 24 2010

Rs 5000

Religare Medium Term Bond Fund (MD)

Religare Mutual Fund

Dec 13 2010 Dec 24 2010

Rs 5000

Religare Medium Term Bond Fund (QD)

Religare Mutual Fund

Dec 13 2010 Dec 24 2010

Rs 5000

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More about PPF, the Safest Investment Option

Public Provident Fund is the best tax saving instrument because the income from PPF does not attract tax as per the current income tax rule. One can deposit the maximum amount of Rs. 70000 in Public provident fund. PPF gives you 8% tax free interest and if we calculate tax for this for a person in 10% tax bracket will get  8.82%, in 20% tax bracket will get 9.65% and in 30% tax bracket will get 10.47%. So invest the maximum limit every year irrespective of you tax saving limit.

PPF is a good long term investment and you can invest in PPF account for satisfying any long term goal such as education of your children, Marriage of your children, purchasing a residential house or for retirement purpose. Normally PPF is for 15 years, but you can extend it for long time in each five years block and can earn same tax free interest, but should not forget to deposit the minimum amount (Rs. 500) every year.

The PPF interest is calculated monthly for the lowest balance between 5th and the end of the month. So keep in mind to deposit before 5th of the month which you wish to deposit to avail the interest for the month.

You can withdraw from PPF account in any emergencies, but do it only in emergencies so that the long term deposit should be the least preference for withdrawal. But take care that if you need loan with more interest, withdraw money from PPF is better. You can withdraw money from PPF account after 6 years of commencement of PPF account and the withdrawal money is limited to 50% of the balance preceding two years of withdrawal.

PPF account is a good and safe investment instrument and if you wish to create wealth with risk free investment go for PPF account and deposit maximum amount every year.

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Tuesday, 21 December 2010

Know Your Pay Fixation on Promotion and MACP

Pay fixation is done for an employee if he/she gets a promotion. There is a slight difference of Pay Fixation in Promotion and MACP upgradation…

We are receiving a number of queries as comments regarding the Pay Fixation from the viewers and we try our level best to reply to all queries. But due to non-availability of certain individual information, we are unable to answer everything they have asked for.

As the employees are in different departments of the Central government establishments, the line of promotion (hierarchy) also differs. If any inputs from the departments regarding the line of Promotion and MACP can be obtained from your side, the confusion related to the Promotion and MACP may be clarified.

For example, please see the table given below…

X, Y, Z are three different departments.
An employee appointed as basic grade of clerical post…



























Employee’s Detail X Y Z
An employee appointed as3050-45903050-45903050-4590
His/Her first promotion3200-49004000-60004000-6000
His/Her second promotion4000-60004500-70005000-8000




























Employee’s Detail X Y Z
An employee appointed as3050-45903050-45903050-4590
His/Her first ACP (after 12 years)3200-49004000-60004000-6000
His/Her second MACP (after 20 years)2400 Grade Pay
(Pre-revised 4000-6000)
2800 Grade Pay
(Pre-revised 4500-7000)
2800 Grade Pay
(Pre-revised 4500-7000)








































Employee’s Detail X Y Z
An employee appointed as3050-45903050-45903050-4590
His/Her first ACP (after 12 years)3200-49004000-60004000-6000
His/Her first promotion after ACP3200-4900
(No Fixation)
4000-6000
(No Fixation)
4000-6000
(No Fixation)
His/Her second MACP (after 20 years)2400 Grade Pay
(Pre-revised 4000-6000)
2800 Grade Pay
(Pre-revised 4500-7000)
2800 Grade Pay
(Pre-revised 4500-7000)
His/Her second promotion after MACP2400 Grade Pay
(Pre-revised 4000-6000)
(No Fixation)
2800 Grade Pay
(Pre-revised 4500-7000)
(No Fixation)
4200 Grade Pay
(Pre-revised 5000-8000)

simple logic is…
“ACP” is equal to “Promotion”
“MACP” is equal to “Next Grade Pay”


we hope that this article makes you understand the pay fixation difference between Promotion and MACP.

Courtesy: Central Government Staff News

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Monday, 20 December 2010

Save Money When You Go Out for Food

You know that how much money we spend when we go out to have food. Normally we make food at our home and it is good for health also. But seldom we go out for having food self or with our family. Here I am narrating some interesting and funny way of saving money when you go out for food. You may feel that it is funny, but if you practice this tips definitely you can save a lot of money.

Before going out for dinner, just ask your friends or relatives about the food and its cost so that you can control your expenses. IF you know early about the cost of each type of food you can decide that whether you have to go to a particular restaurant or foot stall and you can avoid an unexpected expenses. This is applicable for other purchases also. You can choose a good brand and good bargain if you discuss before you shop anything.

Go in happy hours which most of the restaurant offer maximum discount and you can save a good amount of money with those discounts.

Cash your cash vouchers for food which you get from magazines, newspaper or with any other advertisement or publicity.

Eat out for lunch instead of dinner. Most of the restaurants offer a good deal in lunch than dinner.

Eat with good company than eating out single. Group meal can save a lot than you eat yourself.

Weekdays are better than weekends for eating out. Because weekends may be more rush than weekdays and the price also may differ in weekends.

Read out all SMS messages regarding discounts in restaurants and food stalls so that you can use it when you eat out.

Neighborhood food stall is better than fancy restaurants. Fancy restaurants charge all expenses for such shows and fancy items in your food and the cost of food will be high. You can get reasonable food from neighborhood food stall.

Collect the usable leftovers. Keep a bag with you and put all good portion of food you could not finish and can use for the next food or for the next day’s food. IF you collect the extra food such as complimentary items it will be a good saving for you.

Give a good tip so that the employees will remember you and the chance of getting food items with reasonable price will be increased.

IF you keep in mind the above mentioned tips and practice it you can save a lot of money. This is not meant that you are miser, but you will be a good citizen who considers others while having food by saving money.

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Sunday, 19 December 2010

Public Provident Fund (Amendment) Scheme, 2010 regarding the account opened by HUF

There is an amendment in Public Provident Fund named Public provident fund (Amendment) Scheme. 2010 related with the closure of PPF account opened by HUF (Hindu Undivided Family). The Gazette notification has been published on 7th December, 2010.

NOTIFICATION NO. GSR 956(E), DATED 7-12-2010

In exercise of the powers conferred by sub-section (4) of Section 3 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government hereby makes the following Scheme further to amend the Public Provident Fund Scheme, 1968, namely :-

1. (1) This scheme may be called the Public Provident Fund (Amendment) Scheme, 2010.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. In the Public Provident Fund Scheme, 1968 in paragraph 9, in sub-paragraph (3), after the proviso, the following proviso shall be inserted, namely:-

“Provided further that an account opened on behalf of a Hindu Undivided Family prior to the 13th day of May, 2005, shall be closed after expiry of fifteen years from the end of the year in which the initial subscription was made and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him. In the case of accounts opened on behalf of Hindu Undivided Family, where fifteen years from end of the year in which initial subscription was made, has already been completed, they shall also be closed at the end of the current year, i.e. the 31st day of March, 2011 and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him.”

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Almost all insurance companies issuing health insurance scheme and most of them are attracting people. Life Insurance Corporation of India (LIC) also has a health insurance plan which is different from other health insurance schemes. It is called health plus. According to Table No. 901 the Health Plus Plan is a long term unit linked insurance plan.

Now a day’s medical expense is overmuch high and a normal family cannot afford it. Even if a family going smoothly with their normal income, they cannot afford any medical bill when there is a causality of illness, hospitalization and surgery. In such a condition medical insurance do a good help.  Here LIC also introduced a health insurance plan but it has a quite difference from a normal health insurance. It is a unit linked plan which beneficial to you even if you do not need any medical helps in any year of policy. Let us know more about the policy.

LIC’s Health Plus is a long term health insurance plan which gives health insurance cover for the entire family which includes husband, wife and children. It gives Hospital Cash benefit (HCB), Major surgical benefit (MSB) and also unit linked Insurance plan which is designed to meet the Domiciliary Treatment (DTB) expense of the insured members. The balance of the benefit will be credited to policy fund account. The amount paid for HCB (Hospital Cash Benefit) and MSB (Major Surgical Benefit), administration charges and applicable service tax are deducted on monthly basis. The policy holder can claim for the self and family as per the policy bond.

Hospital Cash Benefit (HCB) is a benefit which is payable to the insured or the family of insured for hospitalization due to any accidental body injury, sickness etc. The minimum benefit is Rs. 250 per day and the maximum benefit is Rs. 2500 for self (if the person insured is hospitalized) and Rs. 1500 for spouse and children (if the spouse or children is hospitalized) per day of hospitalization. This daily benefit is applicable for different time periods according to the policy years completed.

Major Surgical Benefit (MSB) is a lump sum amount (not the actual cost of surgery) equivalent to a percentage of the sum assured (The percentage will be varied as per the type of surgery performing. Example For Lung Transplantation – 100%, Replacement of Knee joint – 60% of sum assured) is given to the insured for any major surgeries defined by the LIC of India after submitting the relevant proof.

Domiciliary Treatment Benefit (DTB) is the principal insured can withdraw the actual expenses incurred in any treatment made at his or her domicile (House) for the principal insured or others insured as per the terms of LIC of India.

Maximum Annual Benefit period is 18 days in 1st Year and  60 days per year thereafter, inclusive of stay in ICU Max (ICU is restricted to 9 days in 1st Year and 30 days thereafter)

Up to 90% of the policy fund is invested in Government securities, corporate debt and money market investments and the balance amount is invested in any listed equity shares and the NAV (Net Asset Value) of the fund is declared on daily basis.

The minimum premium for single life is Rs. 5000 and 6 times of the HCB of the person insured, for 2 lives is Rs. 7500 per annum and 6 times the HCB of the person insured and 3 time the HCB of other insured and for more than 2 lives is Rs. 10000 plus 6 times of the HCB of the person insured and 3 times of the HCB of other persons insured. There is no any maximum limit.

Minimum age of entry is 18 years for the person insured and spouse and for the dependent children is 3 months or more. Maximum age of entry is 55 years for the person insured and spouse and 17 years for children insured.

Maximum cover ceasing age is 65 years for the person insured and spouse and 25 years for dependent children.

You can pay the premium on yearly, half yearly or monthly (ECS).

LIC of India gives a good opportunity to the persons insured so that they can earn from the medical insurance even if they do not have any medical treatment.

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Saturday, 18 December 2010

Maximize your return form investments with simple steps

Investing money is really separate way of making money than make money with our daily work or business. When we invest we just invest our hard earned money and it will grow itself. We should not do any additional work for the same. If we invest in any bank fixed deposit the interest will be added automatically and we should not do anything for it. Just like mutual funds, government securities, stock etc. Investing is a good way to create wealth.

But when we invest we must know how to invest and where to invest. We cannot completely depend on any experts. We have to take decision ourselves. We must create our own wealth. Just it is your life and your future, so you have to take decision. Here I am going to give you some guidelines to maximize your wealth. Try to get most of your investments

Tax free Income schemes.

Most of the outcome from investments is taxable and the tax may be deducted at source also. A good percentage of money will go as tax. It is for the existence of our country and for the development of our country. Sure we have to give tax. “Give to Caesar what belongs to Caesar, and give to God what belongs to God”. But there is some investment which does not attract tax. Some Government securities and saving investments such as Public Provident Fund (Interest from Public Provident Fund), Long term capital gain form shares (Capital gain received from the transaction of shares which are held for more than one year) etc. are tax free income.

If you get 10000 bucks as PPF interest and you are in 30% Tax bracket this 10000 bucks is equals to 14286 bucks in any taxable income investment. (After 30% tax from 14286 the net gain will be 10000). So find such schemes and invest in those schemes. Long term capital gain from sale of immovable property such as land or building also can be escape legally from giving tax by purchasing another immovable property with the capital gain you earned within a stipulated time limit. The Long term capital gain also will be calculated with the variation in price index also. So you can save a good amount of tax. Learn all these type of investments and plan your investments accordingly to save tax and grow your wealth.

Watch the market trends and make profit.

You can make money from stock market in any trend, whether is bearish or bullish, only in rare situation the whole sectors of stock become loss like recession etc. So watch the market well and diversify your stock trading in various sectors of stocks. You can make a good profit and your risks can be calculated if you are watching the market well.

Mutual funds

When you invest in mutual funds, evaluate the performance of the fund house and fund manager with regular time periods. And if the performance is not good, change the fund house of fund manager as the case may be to make a good profit out of your hard earned money.

Make tax saving investments

Under section 80C, 80CCF etc., allows you to get exemption from tax up to a certain extend of your investment. Avail maximum benefit from such investments.

Reduce or pay off your loans as soon as possible

This is also a method of creating wealth. If your keep your loan, your wealth will be gone out in the form of interest. So try to pay off your loan and pay off the loan with highest interest rate first.

If you are aware of these simple points, no doubt you can multiply you wealth faster. So follow the above mentioned matters thoroughly and try to learn more such tricks and tips to become a successful investor.


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Friday, 17 December 2010

Importance of Term Life Insurance Policies

You work hard and support your family. You keep a portion of your hard earned money as investment for yours or your family’s feature needs. You may be the only bread earning member of your family or you and your spouse are working. Even if both of you are earning members your income may be enough to meet all your needs. In such a condition most of us are not thinking about any unfortunate events which may occur in our life. These uncertain events may make us disable to work or may lead to death. Did you ever think such a possibility? I am not a pessimistic. But just make you remember the possibilities. In such a condition you can think about insurance policies which may be helpful to protect you and your family.

Now insurance policies are expensive and an ordinary person could not easily afford it. I also thought that we deposit premium with much difficulty and when it is matured the amount which may receive will be very low due to inflation. Suppose we are depositing 5000 bucks for twenty years and at the maturity after twenty years you will get 100000 bucks and bonus or anything else as per the terms of the policy. When we compare these 5000 bucks with the maturity amount after twenty years, it won’t be anything. But when I realize the importance of insurance in our life, I can afford these 5000 bucks for the security of myself and my family.

Yes, insurance policies are important to secure you and your family to face any unforeseen unfortunate events. Without insurance policy we and our families are in uncertainty. But we have to escape from the heavy expenses of insurance premium. There is a good way that you can opt for any cheap term insurance which gives you enough protection with a very low premium. Most of the insurance agents will not tell you about such policies. Because, the premium amount will be very less, the commission also will be less. When I planned to take an insurance policy I have approached a known insurance agent. He explained me about so many insurance policies. But as a financial person I have calculated the benefits of all and refused all of them. At last after so many discussions he informed me about a term insurance policy which is enough to satisfy me with the premium and the outcome.

Yes term insurance policies may not be attractive at the first site just like most of the arranged marriages. But after wards, when you know about all the features and benefits you will love it. This policy will not gives you attractive offers such as getting money back after certain intervals etc.  But offer a long term guarantee with sufficient amount by spending a very less premium. Let us see some features of these term insurance policies.

Some insurance companies allow adjustable premium in term insurance. With this features you can increase or decrease the premium amount as per your requirements and it is only according to the terms of the insurance policy.

These policies cover your life with a cheap premium amount and can say that cheap life cover. Some insurance companies allow you to convert this cheap life cover to whole life insurance. But only if the terms of insurance allow so, it depends according to your age and so many other factors.

It is better to start insurance at an early age, because the younger people should pay lesser premium than elder people, and the first premium will be the premium amount for ever. Take this insurance policy for a long time, and then you can get the protection for such a long time with the lower premium. I have taken a term insurance policy at an early age and the term covers till my 60 years of age and there is an additional premium free protection for another 10 more years.

The main disadvantage is that the maturity amount of such policy is very less. Only a certain percentage more than the premium amount you paid. But you can invest the balance money you save from lover premium, in any other investment schemes and can make more money than other insurance policies offer.

So do not forget to take an insurance policy which gives you enough life cover and start it at an early age as possible and secure the future of you and your family.

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